The Lato Letter: Volume 2, Issue 2.

The Lato Letter: Volume 2, Issue 2.

Google reported earnings last night that were comfortably better than the estimates but the stock price took a huge jump today. Google, as usual, did not provide specific guidance for the next quarter but they did offer a positive view of how the company is managing the transition from desktop search to mobile search. Although investors, myself included, do focus on the quarterly earnings reports it is the broader picture and the stock’s valuation that are far more critical.

Google laid out that its business plan continues to be on track and that with its still very reasonable valuation prior to and even after today’s move, the stock remains very attractive.

The next big earnings report is tonight, when Apple reports its fiscal 2013 1st quarter results. I was asked to comment on the results by Proactive Investors and here is the link to their article.

Although the article does focus on today’s results, investors should not lose sight of the bigger picture where Apple remains a very strong company, with deep management that continues to successfully execute its business plan while trading at an extremely low valuation. We will know in a few hours what the next few days will bring for the Apple share price but I continue to believe that the stock will still be a great performer for all of 2013.

This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change without notice.

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